A bill pending before the Legislature in the tiny island nation of WooHoo would prohibit private companies from selling canoe insurance and make the state the single payer of claims for canoe accidents. Private insurance companies that have made above normal profits have spent large sums of money trying to prevent the legislature from passing this bill into law. This is an example of
A. collusion.
B. an externality.
C. rent-seeking behavior.
D. government failure.
Answer: C
You might also like to view...
The indifference curve in the above figure
A) could illustrate a person's preferences for identical computer disks made by two different companies. B) could illustrate a person's preferences for right-handed and left-handed gloves. C) has a marginal rate of substitution that at first decreases and then increases. D) None of the above statements is correct.
Part B of the Medicare program covers _____ and is _____
a. pharmaceuticals; voluntary b. pharmaceuticals; mandatory c. physician costs; voluntary d. physician costs; mandatory
If the exchange rate changes from 1 euro per U.S. dollar to 1.2 euros per U.S. dollar, the Euro has:?
What will be an ideal response?
The notion of utilitarian justice is that
A. income should be distributed so that the well-being of the worse-off member of society should be maximized. B. income should be distributed according to an individual's needs. C. any change that makes some people better off without making anyone worse off should be undertaken. D. through income redistribution, the rich sacrifice a little and the poor gain a lot.